Gap down and rally today -- best tells to trade on the long side were GS and metals (especially AKS). As we posted this morning:
We were flat in the early afternoon as GS had broken the 20 EMA/5 min chart and usually when that happens market just hugs the EMA all day making for choppy, range-bound action. Then suddenly GS picked itself up and broke away from the EMA -- that woke us up and we quickly looked through our lists to look for trades. Steels and miners stuck out and we bought both SLX XME (posted real-time on stocktwits) At the time we felt like we were chasing both but at the same time we didn't feel like we had much choice considering the action in the metal/miners. When the trade started to work in our direction (both closed over 2% green from our entries and XME now up 3% from entry in AH action) we took off a point in each and moved up stops.
Strange sandwich pattern on SLX daily and volume not too impressive but we liked the intraday action. Let's see if we can get some follow-through. We're long SLX 53.15 swing with stops to around break-even.
XME we're long from 48.2 swing and will probably take off another partial at the 200SMA near 50.3. Again, volume nothing to write home about but intraday price action on miners was very impressive. Stops at this point are also around break-even
Update from May 26, sold partials into today for around 5-6% profit (tweeted exits). Flat.
Update from May 26, sold partials into today for around 5-6% profit (tweeted exits). Flat.
